Hi everyone
I'm new atall this investing stuff and after reading a little bit of that in here and there I've decided, without really knowing what I was doing, to start investing in low-cost ETF. In February I've bought participation in 5 different ETFs, 20 % each, with an allocation of 40% bond and 60% stocks.
I'm 28 year old that manages to put in investing only 10'000 $ every year (the rest are mandatory and facultative pensions funds).
So I invested 2000$ in each one of the 5 indices, and I paid a total of 150$ of transaction fee for 5 transactions. What I didn't realize is that with my online broker up to 5000$ per transaction the fee remains approximately the same: 5x5000 $ transaction amount to 160$ fees! It's half of the expenses!!
But since I need 25000$ to invest every year in this 5 indices to maximize the fees efficiency, for the moment I can only do rebalancing only every 2-2.5 years, and I accumulate cash and leave him there without really growing.
What are the suggestions? Should I forget about 2-3 ETF and start concentrating only in 2 max 3, with rebalancing 1x annually with 10000$-15000$? Probably I can augment my exposure to stocks.
Or just forget about the fees and just put as much money as possible as fast as possible in the indices, even once x month?
What's the best strategy? I don't intend to change broker because fees here (Switzerland) are approx all the same: there is a fix cost of at least 15$-20$ per transaction.
By the way my allocation is:
Bonds:
20% iShares Euro Corporate Bond UCITS ETF
20% SPDR Barclays US Treasury Bond UCITS ETF
Stocks:
20% Vanguard FTSE Developed Europe UCITS ETF
20% Vanguard FTSE All-World UCITS ETF
20% Vanguard S&P 500 UCITS ETF
Really thanks for all suggestions! This is a great community.